Finance
July 6, 2020

Financial Services Shift Budgets to Improve Cybersecurity and Cloud Computing

Financial Services Shift Budgets to Improve Cybersecurity and Cloud Computing

The increase in cybercrime and threats continues to rise every year. Now is the time for businesses within Finance to be proactive, instead of reactive toward cybersecurity. If a company expands its technology, it only makes sense to increase security as well.

As more financial services make the transition to cloud computing, budgets are shifting to meet cybersecurity needs. Businesses are learning the hard way about the impacts poor security can have on their company. Luckily, there have been shifts in efforts toward improvements this year specifically.

A recent example of why security measures are necessary to have is the Capital One data breach. In recent news, they were presented with an 80 million dollar civil money penalty and were presented with an outline to meet compliance needs. This case has been a valuable lesson for many businesses that have taken cybercrime lightly.  

Many employees are now working from home due to the ongoing restrictions of current world events. Being able to manage security needs without physically being present creates another set of measures that need to be in place. According to the University of Maryland, hacker attacks happen roughly every 39 seconds, and on average 2,444 times a day. If there are no systems in place to handle continual protection, it may be time to look into a professional IT consultant to help get back on track.

Businesses have been slow to implement new policies, but are now speeding up processes to meet security and compliance needs. Protecting customer data is the future toward building trust. There are generally four types of cyber threats that financial services face. They are as followed:

  • Ransomware
  • DDoS attacks
  • Phishing
  • Web application attacks

Cyberthreats carry the risk of data breaches and legal actions such as litigation and steep regulatory fines. As businesses continue to accelerate digital transformation, so does the need for cybersecurity. Below are a few best practices toward cybersecurity as we prepare for 2021.

Building a cybersecurity team or committee that can grow

Keeping up with cybersecurity measures can take a lot of work. That is why more financial services are building teams and establishing committees that provide clear oversight and responsibilities. 87% percent of companies this year charged at least one board-level committee with cybersecurity oversight, which is up from 82% last year and 74% in 2018.

Having a committee or team has been helpful when dealing with third-party companies and services. Communication and oversight are two factors that can always be improved when expanding technology. These teams can provide company-wide audits and help improve budgets toward cybercrime threats.

Providing employee training and best practices

Talent can be scarce when it comes to cybersecurity. It is important to work closely with HR to find the right fit for your IT team. Until businesses can build that ideal team, many are beefing up their knowledge and providing best practices toward employees. Employees log in and out of their accounts every day, so the odds of a potential breach increases. According to Verizon, 94% of malware is delivered by email.

Basic practices can be as simple as changing a password on a routine basis or providing a simple one-sheet pdf to employees on ways to avoid scams. Engaging with your teams with training and interactive workshops are another great way to increase security at a more organic level. As more businesses take on cloud-based services to help with processes, employees need to be aware of the responsibility they possess.

Consulting with an IT Managed Service

Understanding the requirements to meet compliance needs and safety measures is crucial to the longevity of the digital infrastructure. Financial services are increasing their computing power as they head into 2021 and want to ensure they are safe as they proceed forward. One approach that has proven results is consulting with an IT managed service. In 2023, spending on digital infrastructure protection will reach up to $24.6B.

Another perk to consulting with IT professionals has been to outline policies toward cybersecurity and building an infrastructure around best practices. If a data breach happens, and a business cannot react to it in time, there will be future consequences. IT managed professionals have been able to foreshadow and catch any potential attempted toward a breach.

As a leader in cloud technology solutions, Tekscape connects businesses to cloud-based services to increase security, revenue, and efficiency. We equip businesses with a strategy and foundation, helping provide the tools to gain actionable data through managed IT services, cybersecurity, digital transformation, and team collaboration.

Let’s talk about the best approach to improving cybersecurity for your business.

Contact us today


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